NEERAJ GAS MOVERS,ALLAHABAD vs. ITO 1 (3), ALLAHABAD

ITA 55/ALLD/2023Status: DisposedITAT Allahabad12 September 2023AY 2016-176 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the stamp papers for both deeds were issued on the same day and that the PAN was issued based on the May 13, 2013 deed. Therefore, the disallowance was considered flawed.

What were the facts?

The assessee claimed salary and interest on capital for partners based on a partnership deed dated May 13, 2013. The Assessing Officer (AO) disallowed this claim, relying on an earlier deed dated February 1, 2013, which lacked provisions for such payments. The AO and CIT(A) considered the later deed an afterthought.

What were the issues?

Whether the partnership deed dated May 13, 2013, is valid for claiming partner remuneration and interest, or if the earlier deed dated February 1, 2013, should prevail.

Which sections of the Income-tax Act were involved?

Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ALLAHABAD “SMC”

Before: SHRI ABY T. VARKEY, JM

For Appellant: Shri Tanmay Sadh
Hearing: 05/09/2023Pronounced: 12/09/2023

PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi dated 11.03.2023 for AY. 2016-17. 2. The main grievance of the assesse/Firm is against the action of the Ld. CIT(A) confirming the action of AO disallowing the claim of salary & interest on capital for three (3) partners due to erroneous consideration of the partnership deed dated 01.02.2013, whereas according to the assesse, another deed/rectified partnership deed dated 13.05.2013 was executed by partners, and Income Tax Department issued PAN for the assesse/Firm on the basis of the ver

The order continues below.

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